Nov. 13 (Bloomberg) -- The lira slumped to the weakest in more than a month as Euro-area finance ministers delayed a decision on financial aid to Greece while German investor confidence unexpectedly declined, damping demand for riskier assets.
The lira depreciated for a third day, declining 0.3 percent to 1.8068 per dollar at 6:52 p.m. in Istanbul, the lowest since Oct. 15. Yields on two-year debt closed unchanged at 6.38 percent following declines in the past six days to the least since at least 2005.
As euro-region finance chiefs pushed back the goal of getting Greece’s debt down to a “sustainable” level by two years until 2022, International Monetary Fund Managing Director Christine Lagarde disagreed and said the timetable has to be 2020. The European Union buys 39.2 percent of Turkish exports, according to data published by the statistics office on Oct. 31.
“The market is worried about Greece,” Suha Yaygin, deputy head of emerging markets at Toronto Dominion Bank in London, said in e-mailed comments. “Economic growth does not look possible to me with so much austerity and belt tightening.”
Germany’s ZEW Center for European Economic Research’s index of investor and analyst expectations, which aims to predict economic developments six months in advance, fell to minus 15.7 from minus 11.5 in October, lagging analyst expectations.
Turkey’s central bank cut lending at its lowest funding rate of 5.75 percent to the least in two months, providing 1.5 billion liras ($830.6 million) in a one-week repurchase agreement auction today.
To contact the reporter on this story: Selcuk Gokoluk in Istanbul at firstname.lastname@example.org
To contact the editor responsible for this story: Gavin Serkin at email@example.com